Posted on 11/09/2007 3:55:19 PM PST by shrinkermd
One advantage of having a subscription to The Atlantic is finding out what the Democrats propose to do next.
Clive Crook in under the rubric of "The Agenda" wrote a recent article on homeownership called Housebound.
After agreeing with some benefits of homeownership he then lists the reasons why this is a bad idea. Among his complaints are:
The last of these, interest deduction for mortgage interest, seems to be what the liberals hope to eliminate. They argue thusly:
That is it, folks. Anticipate a move on MID after we have President Clinton and solid majorities in the House and Senate. But, of course, nothing will be said of this before the election. We will need money to pay for AMT repeal as well as government healthcare. Can you think of any more certain source of income?
It's absurd.
If you’re going to index income taxes I see nothing unfair about indexing the mortgage deduction.
>> The MID permits homeowners to deduct interest for cars and so forth by borrowing from their house—just not fair to non-homeowners.
I was under the impression that only home-equity loans that used the proceeds for certain purposes (home improvement, educational expense) were deductible. Am I mistaken?
Considering they're already falling hard, it would not be a soft landing. The collateral damage would be enormous. Enormous.
It also encourages people who should be renting to buy. Without the MID, the subprime mortgage mess we're having right now wouldn't be nearly as bad, since there would be no tax advantage to lure people into taking mortgages they were not going to be able to handle.
The MID ranks among one of the more misguided policy decisions of the 20th century.
I don’t own my own home. I mention this because I think it is important to address this issue frankly. Now that that statement has been made, I want to support the home interest deduction stridently.
Home ownership is very important. Land ownership is very important. I believe it is one of the most sacred rights we have as U.S. Citizens. The deduction makes it that much more accessable for people to own homes.
Home ownership affects many aspects of our society. It helps to keep areas from decaying. It helps to spur purchases that help to furnish or upkeep those homes.
It also provides a place where we can make all the decisions that affect our rhelm.
If you lease, you are subject to the leasor. If you own a home, you make the rules that affect your home.
I’m sure others will come by to make this post pale in comparison, but I wanted to be on the record of supporting the home interest deduction, and opposed to the democrats trying to adultrate it.
The party that pulls the home loan interest deduction will disappear from the face of the earth.
When the mortgage is paid off, I sell the dump back to myself for whatever I like to minimize capital gains and dissolve the corporation.
Perhaps you have a short memory about taxes. In 1986, tax rates were lowered and many deductions were eliminated or reduced including the MID. The rats then began complaining that tax rates were too low on the wealthy. Soon tax rates were increased but deductions were not restored. In addition, the AMT eliminated and capped deductions for many reasonably wealthy tax payers.
In a perfect world, the tax code would be used for revenue collection and not social engineering. Everyone should pay the same rate on either consumption or income. That perfect world does not seem to be a possibility especially with the rats in control. With the current situation, I am adamantly opposed to any reductions in deductions, especially the MID.
Never trust a rat especially on taxes. Any compromise will be turned into a weapon in which to increase your taxes later.
Good. They're way overpriced as it is.
Considering they're already falling hard, it would not be a soft landing. The collateral damage would be enormous. Enormous.
BS.
Arguably, part of that tax savings is passed on to the tenant, the rest is captured by the landlord, potentially across an unlimited number of properties.
Why do liberals always come off sounding like elementary students?
"It's not fair. Wa."
Renting allows great flexibility. If you can't afford it, you finish out your lease, or work something out with the landlord and move into something you can afford. Simple, fluid, efficient. Need to SELL a home you can't afford? If the market is too saturated or sucks, or if you owe taxes or have liens or judgments, it can be a nightmare. Plus you have to pay a stupid broker and title schmuck for doing next to nothing.
Kill the deduction. It is unfair and distorts markets.
Rents cover part of the prop tax, unless the landlord is an idiot.
NOW THAT WOULD BE A TRAIN WRECK...
Let’s be stupid and give the government more money for them to waste.
Any deduction that denies them spending power is a good thing.
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